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Suppose Fort Worth Star Telegram publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mortgage payment; $250 cost of electricity to run the printing presses; $800 for computer graphics design; and $200 to the city of Fort Worth in property taxes (based on the value of the building and land). Its total variable costs are:

  • $8,950.
  • $8,750.
  • $6,550.
  • $6,300.

Macroeconomics, Economics

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